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In Lips, one is able to select many different options depending on the menu selected. Some menus were retained in later installments, while others (namely Jukebox and Get Music) were ditched for other modes. The menus available in the game are: Sing!, Jukebox, Get Music, My Lips and Options.

This mode offers players the chance to play rated songs and custom playlists. One major drawback from this mode is that songs will only play for 20 seconds before they fade out, unless players shake the wireless microphone to start singing, therefore, it is impossible to truly have a jukebox mode without singing. This mode was scrapped in Number One Hits and later installments.

This menu offers new songs in exchange for Microsoft Points. This is also where players can import media from foreign devices such as Hard Drives, MP3 Players, cellphones, laptops, etc. In later installments, these two modes were separated and the import song section was renamed Freestyle mode. Strangely enough, the achievements related to this mode acknowledged Freestyle mode with that name before it was officially given this name by the user interface.

My Lips offers a statistics area for various achievements, such as Medals earned, victories won in vocal challenges and a play counter for the top 10 played songs. This is also the place where players can participate in Song Challenges. In Number One Hits, players can also change the color of their wireless microphone here, instead of the Options menu.

Players can change the game's theme, color of the mics' LEDs or turn the lights off entirely. Miscellaneous options include deactivating SFX, Noisemakers and Help Display, as well as the game's credits. As of April 2009, the game also includes an Automatic Mic Calibration tool for HDTV consumers.

This menu was replaced by the Experience menu in later installments of the series.

Lips offers a localized soundtrack for eight regions of the world. Due to this, several songs are exclusive to certain regions, while others are available worldwide as downloadable content. Each disc has 40 master tracks.

In Lips, players are incapable of failing a song. However, iNiS rewards players with the incorporation of gameplay elements such as Medals and Rankings. These represent a player's effort to sing accurately or just for fun. The inclusion of other elements such as the motion gestures and Leaderboards make it possible for both casual and hardcore gamers to enjoy Lips. Whereas other games seem a bit more biased towards a specific crowd, Lips has something for both sides.

As part of the game's 'solo career', by earning a certain number of stars (via Star Stream) and medals, players can get a Grand Rank promotion, which lets players earn titles from "One-Hit Wonder" to "Superstar"

Similar to all Xbox 360 games, Lips offers gamerscore by completing certain tasks within the game. Not unlike downloadable content, achievements are also shared between Lips and all future installments. Check here for a list of all achievements and how to obtain them. It is possible to attain 1000 gamerscore points with the original Lips game while gaining an additional 250 points via Number One Hits (or other games that run on the same engine, such as Canta en Español) for a total of 1250 gamerscore points.

Additional achievements were added with the release of Party Classics, bringing to the total to 1500 gamerscore.

Lips was heavily criticized for its extremely lenient ranking and the lack of a mic calibration tool, which affected HDTV's consumers.

In April 2009, iNiS released a Power Pack DLC, which introduced Leaderboards and a new ranking style that relies heavily on pitch and adequate Star Stream usage. Additionally, it is now impossible to trick the voice recognition into picking white noise. Vibrato is also harder to achieve and has a lower multiplier. The Options menu also was updated to include a Microphone Calibration tool. All updates were retained for Number One Hits and future titles.